Bru Case Study

Topics: Coffee, Coffeehouse, Microsoft PowerPoint Pages: 9 (2431 words) Published: January 28, 2012
BRU World Café

Note: All information in the case has been garnered from sources in the public domain. This case has been developed for purely academic purposes, and is not in any way the intended or actual plan of Bru World Café

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About the Category/ Brand and Market Trend  BRU is India’s largest coffee brand in terms of volume, with a portfolio of instant and roasted & ground (filter) coffee, Ice and Hot Cappuccino and out of home vending. BRU was the first coffee brand to go national with a variety of offerings suited for the varied and distinct taste palette of the Indian consumer. BRU Green Label Roast & Ground is the largest brand in the conventional coffee segment. BRU’s Hot Cappuccino and Ice Cappuccino are innovative products specially designed for the cafe going youth - to enjoy a great cup of cappuccino even at home.  The brand enjoys very strong equity in the south and its awareness and associations in the non-south part of the country emanate from its roots as the authentic south Indian coffee brand. BRU strives to stimulate conversations over coffee livening up every shared moment  A key trend, which has fuelled coffee consumption in India is “rise in conversations over coffee”, which means a direct correlation with increase in out of home consumption for coffee as there is an increasing trend to socialize in cafes (especially in 10 lakh plus towns).  With more than 1500 coffee cafes in the country, up from 175 in 2002 (of these around 1000 have opened in the last 5 years), coffee has emerged as the most happening beverage category, estimated to be around 1000Crs (in End Consume Price (ECP) terms) in 2011.  Valued at around US$185 million, the organized café market in India is estimated to be growing at a compound annual rate of 25%. Players from Barista Coffee Co. to Cafe Coffee Day are opening outlets practically every weekend. In the past couple of years we have also seen the entry of new players like Café Mocha and Gloria Jeans in the premium category.  The growth [of cafés] has been triggered by rising youth spending, paucity of alternative hang-outs and an increasing number of new office complexes and colleges. The market has the potential to touch US$800 million to US$900 million with a total of 5,000 cafés by 2015.

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This provides a unique opportunity to leverage the strength of well established brands in HUL’s beverage portfolio to create a service model that would allow building preference for these brands while also adding a sizeable turnover to HUL’s Foods business. Given the size and opportunity of the coffee café segment, BRU became the natural choice for leveraging this opportunity.

With entry into cafés, BRU plays across the coffee category definition becoming a complete in-home and out-of-home coffee brand and also proactively drives “coffee experience” with direct consumer engagement. This is also an approach for the brand to contemporarise and premiumize by driving imagery through a futuristic segment.

“Coffee Experience” model is an opportunity which can be utilized to deliver the dual objectives of : 1. Building expertise and coffee credentials for BRU in the coffee category and get an imagery rub-off on the in-home consumption portfolio. 2. Another important value driver identified for the category is, “Bringing out of home experiences in-home”. Cafes will provide a unique space and an exclusive retail channel to drive this opportunity.

This segment holds immense potential given that the coffee consumption in India is still very low as compared to the rest of the world and the Indian market is just starting to heat up with international players like Starbucks and Dunkin Donuts announcing their entry here.

BRU World Café Theme Great coffee is an experience. We bring it alive. When you step into BRU World...
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